Deckers Outdoor posts 2.5% decline in Q2 sales

Second Quarter Review

- Net sales decreased 2.5% to $170.1 million compared to $174.4 million for the same period last year.

- Gross margin was 41.1% compared to 42.2% for the same period last year.

- Diluted loss per share was $(0.85) compared to $(0.53) for the same period last year.

- UGG brand sales decreased 6.9% to $100.4 million compared to $107.9 million for the same period last year.

- Teva brand sales decreased 8.4% to $31.2 million compared to $34.1 million for the same period last year.

- Sanuk brand sales increased 7.5% to $30.1 million compared to $28.0 million for the same period last year.

- Retail sales increased 29.1% to $32.5 million compared to $25.2 million for the same period last year; same store sales decreased 5.3% for the thirteen weeks ending June 30, 2013 compared to the thirteen weeks ending July 1, 2012.

- eCommerce sales increased 34.2% to $10.7 million compared to $8.0 million for the same period last year.

- Domestic sales decreased 3.0% to $110.1 million compared to $113.5 million for the same period last year.

- International sales decreased 1.6% to $60.0 million compared to $61.0 million for the same period last year.

“We are pleased with the second quarter, and while it is our smallest quarter it was an important transition period for the UGG brand that has positioned the Company for a good back half of the year, ” stated Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors.

“We experienced solid sell-through of the UGG brand’s spring line in our wholesale and eCommerce channels and we believe the consumer response to the initial deliveries of our new transitional fall product has been very positive.

"While less than favorable weather negatively impacted sandal sales for the Teva and Sanuk brands, we reacted quickly to deliver bottom line results that were better than plan. We remain optimistic about our ability to expand sales and margins as we head into our highest volume sales quarters, and we continue to be excited about the many long-term growth opportunities that we believe exist for our business.”

Division Summary

UGG Brand

UGG brand net sales for the second quarter decreased 6.9% to $100.4 million compared to $107.9 million for the same period last year. Higher global retail sales from new store openings and an increase in global eCommerce sales were offset by lower domestic and international wholesale sales, lower international distributor sales and a decrease in same store sales.

Teva Brand

Teva brand net sales for the second quarter decreased 8.4% to $31.2 million compared to $34.1 million for the same period last year. The decrease in sales was driven by lower domestic wholesale sales, partially offset by an increase in international distributor sales, and to a lesser extent gains in domestic eCommerce sales and international wholesale sales.

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Deckers Outdoor Corporation